Unbleached kraft or soda wood pulp excluding dissolving grades market in South America

Earlier Report Observations

The South American unbleached kraft pulp market began the period with Brazil solidifying its role as a major global producer, supported by expansion projects targeting export markets. Market volume grew in 2019, bolstered by the Suzano-Fibria merger, which increased combined production capacity for hardwood kraft pulp. However, in 2020, the market contracted as rising raw material costs and global supply chain disruptions, linked to inflation and geopolitical tensions, affected production margins and output.

A recovery in market volume occurred in 2021, coinciding with heightened environmental regulations that drove investments into more sustainable pulp production technologies, such as chlorine-free bleaching. After stabilizing in 2022, the market declined in 2023. During this time, industry players focused on new product development, like Sappi's launch of a lightweight unbleached kraft paper for luxury retail packaging, and Suzano completed a significant expansion of its eucalyptus pulp capacity, supporting long-term supply in the region.

In 2024, a key regulatory change in Brazil exempted unbleached chemical wood pulp from tariffs, a move favorable for exports. The packaging sector also saw consolidation with the Smurfit Kappa-WestRock merger, creating a large player with potential influence on pulp demand, while the broader industry continued to adopt AI-based control systems and increased recycled fiber usage to improve efficiency and sustainability.

Production unbleached kraft or soda pulp in South America

In kind, 2017-2020, K t

Top producers of unbleached kraft or soda pulp, 2017-2020

World map of production of unbleached kraft or soda pulp, 2017-2020

South America's production of unbleached kraft or soda wood pulp, excluding dissolving grades, has declined for the second year in a row. In 2019, output reached 2 770 K t, marking the highest level recorded during this period. However, by 2020, production had fallen to 2 684 K t, representing a slight decrease of 3.0% compared to the previous year. The most significant increase occurred in 2018, when production rose by 2.9%.

Annual dynamics of production in South America in kind, 2017-2020, K t

Exports unbleached kraft or soda pulp from South America

Exports in kind, K t

Exports of unbleached kraft or soda wood pulp, excluding dissolving grades, from South America have decreased for the second consecutive year. In 2018, shipments peaked at 489.0 K t, but by 2020, they had dropped to 434.1 K t, showing a gradual decline of 5.8% from 2019. Over the period from 2017 to 2020, exports fell by 4.2%, with an annualized rate of 1.4%. The largest decrease was recorded in 2019 at 5.8%, while the most notable increase occurred in 2018, with a rise of 7.9%.

Annual dynamics of product's exports from South America in kind, 2017-2020, K t

From 2017 to 2020, three key markets—China, Asia (not elsewhere specified), and the United States—collectively represented 76.6% of South America's total exports in volume of unbleached kraft or soda wood pulp, excluding dissolving grades.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from South America in kind, 2017-2020

Exports in value, M $ US

South America's export value of unbleached kraft or soda wood pulp, excluding dissolving grades, has declined for the second year in a row. In 2018, exports reached their highest point at 408.7 M $ US, but by 2020, the value had fallen to 232.9 M $ US, down by 18.8% compared to 2019. Between 2017 and 2020, exports decreased by 17.1%, with an annualized rate of 6.0%. The largest drop was in 2019 at 29.8%, while the most significant increase occurred in 2018, with a rise of 45.5%.

Annual dynamics of product's exports from South America in value, 2017-2020, M $ US

During the period from 2017 to 2020, China, the United States, and Asia (not elsewhere specified) were the primary destinations for South America's exports in value terms of unbleached kraft or soda wood pulp, excluding dissolving grades. Together, they accounted for 75.6% of total export value, with China leading at 54.7%, followed by the United States at 10.7%, and Asia (not elsewhere specified) at 10.1%.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from South America in value, 2017-2020

Imports unbleached kraft or soda pulp to South America

Imports in kind, K t

Imports of unbleached kraft or soda wood pulp, excluding dissolving grades, into South America contracted in 2020, totaling 23.3 K t, which represents a sharp decline of 40.7% from 2019. Over the period from 2017 to 2020, imports decreased by 47.2%, with an annualized rate of 19.2%. The largest increase was recorded in 2019, with a rise of 8.6%.

Annual dynamics of product's imports to South America in kind, 2017-2020, K t

From 2017 to 2020, Russia, the United States, and New Zealand were the main sources for South America's imports in volume of unbleached kraft or soda wood pulp, excluding dissolving grades. Together, they accounted for 36.7% of total imports, with Russia contributing 24.1%, the United States 10.8%, and New Zealand 1.7%.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to South America in kind, 2017-2020

Imports in value, M $ US

Imports of unbleached kraft or soda wood pulp, excluding dissolving grades, into South America have fallen for the second consecutive year. In 2018, imports reached their peak at 30.6 M $ US, but by 2020, the value had dropped to 22.3 M $ US, equivalent to a decrease of 21.9% from the previous year. Between 2017 and 2020, imports declined by 21.6%, with an annualized rate of 7.8%. The largest increase was recorded in 2018, with a rise of 7.8%.

Annual dynamics of product's imports to South America in value, 2017-2020, M $ US

In the period from 2017 to 2020, Russia, the United States, and New Zealand were the leading sources in the geographical breakdown of South America's imports in value terms of unbleached kraft or soda wood pulp, excluding dissolving grades. Together, they made up 34.3% of total import value, with Russia accounting for 22.7%, the United States 9.8%, and New Zealand 1.7%.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to South America in value, 2017-2020